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Key Developments
UK government outlines new measures to enhance export resilience and support domestic industries
FTSE 100 expected to open slightly lower after prior day’s retreat
Currency markets and global equities show mixed movement ahead of major US economic data releases
London markets are forecast to open on a softer note Thursday, as the UK government unveils a fresh initiative aimed at strengthening trade resilience. The Department for Business & Trade announced a comprehensive trade plan designed to shield UK-based firms from global volatility and provide enhanced support for overseas expansion.
Central to this plan is a significant expansion of UK Export Finance, increasing its lending capacity by a further GBP20 billion to reach a total limit of GBP80 billion. New trade support mechanisms are also set to be introduced, focused on boosting export volumes and insulating domestic businesses from external disruptions.
FTSE 100 Seen Slightly Lower in Early Trading
According to IG, futures suggest the FTSE 100 will open around nine points lower, following a decline of around half a percent in the previous session, which saw the index close near 8,718. Market focus remains on macroeconomic signals and updates from global policymakers.
Currency Moves and Global Market Snapshot
In early currency trading, the British pound showed strength against the US dollar, rising slightly from its prior session close. The euro also firmed while the US dollar eased against the Japanese yen.
On Wall Street, the major indices finished mixed overnight. The Dow Jones Industrial Average and S&P 500 edged slightly lower, while the Nasdaq Composite closed modestly higher.
Comments from Federal Reserve Chair Jerome Powell highlighted that the US is unlikely to enter a stagflation scenario, though the central bank remains alert to evolving conditions. Powell addressed lawmakers after the Fed recently revised its 2025 growth outlook downward and raised inflation projections for the current year.
Asia Mixed as Investors Monitor Global Signals
Asian markets reflected varied sentiment on Thursday. Japan's Nikkei 225 index posted a solid gain, while the Shanghai Composite remained flat. The Hang Seng in Hong Kong was down in morning trade, while Australia's S&P/ASX 200 slipped slightly by the close.
Commodities and Corporate Focus
Gold prices edged higher in early trade, continuing their recent upward trend. Brent crude, however, saw a modest dip from the previous session.
On the corporate front, Thursday’s results calendar features earnings from Cake Box Holdings and Currys, both releasing full-year financials.
